HSA News for November 4, 2019
HSA news is compiled by Mr. HSA, Roy Ramthun each week.
News from Washington
House Approves Trump Impeachment Procedures
On October 31, the House of Representatives took its first major step toward making Donald Trump just the third president in history to be impeached, approving procedures for an inquiry likely to burst into full public view in weeks. The measure passed in a 232-196 party-line vote with just two Democrats voting against it and no Republicans supporting it.
How Americans Split on Health Care: It’s a 3-Way Tie
A new survey asked a panel of 2,005 adults to pick their favorite plan from three choices. One resembled the Medicare for all proposal; one was like more incremental Democratic proposals; and one was like a plan proposed by congressional Republicans. The share of the public supporting each option wound up being almost identical — around 30 percent each.
Bipartisan HSA Reforms Advance in House Committee
The powerful House Ways and Means Committee reported out three bipartisan bills on October 23 that would expand and improve the flexibility of HSAs. The three pieces of legislation would make several updates to current law concerning direct primary care, reimbursement for over-the-counter drugs and menstrual care products, and HDHP coverage of inhalers below the deductible.
HSA Studies & Analysis
HSAs Help Gen Z Manage High Healthcare Costs
High healthcare costs are keeping young adults from saving for the future, new research shows. The study identified a couple of areas in which healthcare spending restricted young adults’ abilities to attain financial independence or even cover basic needs. To deal with these high and rising costs, the researchers offered several tips, central to which were HSAs.
HSA Compliance Corner
IRS Releases 2020 Versions of HSA Reporting Forms
The IRS has released Forms 5498-SA and 1099-SA for the 2020 tax year, along with their combined instructions. The new versions are largely the same as their 2019 counterparts. Form 1099-SA has been converted from a form that is revised annually to a continuous use form, meaning both the form and its instructions will be updated as needed.
If Our Company Does Not Sponsor HSAs for Our Employees, Can They Establish Their Own?
If our company adds an HDHP option in 2020 but decides not to offer HSAs through the workplace, could employees who elect the high deductible health coverage establish their own HSAs? Yes, eligible employees can establish their own HSAs outside the employment context.
The HSA Market
Mercer Survey: Nearly Two-Thirds of Midwest Employers Offer HDHPs
Health benefit costs among Midwest employers increased an average 3.6% this year, outpacing an average rise nationally of 3%, according to a new survey by Mercer. 63% of respondents offered CDHP paired with an HSA or HRA.
As HDHPs Gain Steam, More Employers Demand Cost Shopping Tools
A few years back, employers seldom asked about what they could do to make their employees better shoppers for health care. Today, that question comes far more often. The push has come as many employers transition to lower-cost, high-deductible health coverage, a shift that’s led to employees paying more out of pocket for care.
Large Employers Are Scaling Back Their Dependence on HDHPs
For the third year in a row, the percentage of large companies that offer HDHPs as the sole option will decline in 2020, according to a survey by the National Business Group on Health. A quarter of the firms polled will offer these plans as the only option next year, down 14 percentage points from two years ago. That said, consumer-directed plans are hardly disappearing.
Mark Cuban Is (bleeping) Mad About Healthcare. Here's What He Wants to Do About It
Serial investor, TV personality and Dallas Mavericks' owner Cuban wants to use his own muscle to help burn many of the core elements of the healthcare business model to the ground—starting with insurance, he told an audience at the HLTH conference on October 28.
HSAs & Retirement
Tax-Free HSA Withdrawals for Anything at Age 65? Nope!
The HSA distribution rules change when you turn age 65 (or become disabled). But withdrawals for non-qualified expenses are never tax-free. The law permits distributions for any items or services, even if they're not qualified. But Congress attached penalties to distributions for non-qualified expenses to encourage owners to limit their withdrawals to their intended use.
Maximizing Your HSA
Take Advantage of the HSA Loophole
Many people know that HSAs are a great way to pay for qualified medical expenses with their triple-tax advantage features. However, what many people might not know is that there is an IRS loophole that will allow you flexibility in terms of the time frame you can reimburse yourself for qualified medical expense payments. These can extend well into retirement and importantly, be paid on your own terms.
Small But Mighty Tax Savings Tool
With Open Enrollment for 2020 health insurance now under way, many are considering whether or not to enroll in an HSA-compatible health insurance plan so they can take advantage of the significant benefits of an HSA account. We view HSAs as very powerful accounts because they offer the following triple-play of tax advantages that no other account can match.
Consumer-Driven Health Care
Providers Get Win as CMS Delays Push for Hospitals to Reveal Negotiated Rates
President Donald Trump's administration is pushing back a proposal that would have required hospitals to make public the secret rates it negotiates with insurers.
Medical Debt Is Driving How People Make Decisions
When people are uninsured, they are responsible for the full cost of their care, and when they can’t pay, their other assets, such as homes, businesses, and retirement savings, are at risk when debt collectors come calling. But medical debt is forcing American families to take such risks.
Walgreens to Shutter 150 In-Store Clinics
Walgreens will shutter nearly 40% of the clinics in its stores as the drugstore chain cuts costs and shifts to other businesses it believes will draw more people through its doors. The company said Monday that it will close 150 Walgreens-run clinics by the end of the year, but it will keep open more than 200 that are run in partnership with health care providers.
Facebook Vows Strict Privacy Safeguards As It Rolls Out Preventive-Health Tool
Facebook took a step into preventive medicine, rolling out a new tool to encourage users to get flu shots as well as appropriate cancer screenings and heart health tests. But the success of the new product may depend on whether the social media giant can regain consumers’ trust. Facebook said it’s put up strict safeguards to protect the privacy of people who use the new tool.